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Nokia Corp.’s agreement with Microsoft Corp. to make Windows Phone 7 its principal operating system is likely to have a negative near-term impact on the mobile handset leader’s smart phone shipments. With the announcement of the deal, Nokia is eliminating any incentive for consumers and developers to buy into its existing smart phone products, which are based on its Symbian and MeeGo operating systems.

After decades of discussion, the convergence of consumer, computer and communications is finally becoming a reality with the arrival of Apple Inc.’s iPad and competing tablets, a development that will have massive implications for the technology world, spurring competition not only among varying types of products—but among entire industries, according to the market research firm iSuppli, now part of IHS Inc. (NYSE: IHS).“The definition of convergence has changed over time, with the latest version describing it as voice, video and data services being delivered to the home vis-à-vis broadband networks and the new services that would result from this confluence,” said William Kidd, director and principal analyst, financial services for iSuppli.

The move by Barnes & Noble as well as Amazon to slash the prices of their eBook readers reflects a fundamental change in their business strategy intended to counter the rising competitive pressure from Apple Inc.’s iPad. Barnes & Noble on Monday slashed nearly $60 off the $199 prices of Nook eBook reader. Hours later, Amazon dropped the retail price on the Kindle eBook reader to $189, down from $259. Not coincidentally, Apple launched its iBook application, making the free reader software available on the iPad, iPhone and iPod.“With these cuts, eBook readers from Barnes & Noble as well as Amazon now are priced at about the breakeven level with their Bill of Materials (BOM) and manufacturing costs, according to iSuppli’s Teardown Analysis Service,” said William Kidd, director and principal analyst, financial services for iSuppli.